CAG can vet contractors' books

In a letter written to Comptroller and Audit General (CAG) Vinod Rai, Petroleum Minister Murli Deora said: “We have already given direction to the contractors to make available all materials sought by CAG.” “In case, your organisation faces any difficulty from any contractor, this may be brought to our notice. We shall ensure that audit by CAG would be conducted as required,” Deora wrote to Rai on August 27.
Last week, CAG had written to the ministry saying (Mukesh Ambani-led RIL) had at the meeting on August 17 expressed considerable reluctance in providing access to records for the previous years till 2006-07.

Petroleum Secretary R S Pandey said: “The minister has told CAG that any non-compliance by the companies should be reported directly to him.”“Subsequently, RIL had written to the ministry stating that it would voluntarily provide access to its books and sought the years and the modalities for the purpose,” he said. “We had in 2007 asked operators to give in writing their objections to CAG auditing their books. Some operators expressed reluctance, but RIL was not one of them. They have never told us in writing that they are opposed to CAG audit,” he said, adding “For future PSCs, we shall make an enabling provision for audit to be conducted by the CAG, either through its representatives or through a qualified CA firm of recognised.